Climate Change Causes 379% Hike in Insured Damages in Canada Over 10 Years: Report

The annual average insurable losses in the last decade increased in Canada by a whopping 379%, when compared to the prior 30-year average, according to an analysis from MyChoice, a Toronto-based insurtech company.

The report pointed to statistics from the Insurance Bureau of Canada which in September reported that a barrage of disasters has led to record-breaking 228,000 insurance claims over a 20-year period, a staggering 406% increase compared to the previous 20-year average.

Below are additional findings from the study:

• Provinces like Alberta and Saskatchewan, experienced catastrophic increases of 495% and 302%in average annual insurable losses respectively, while Ontario had a 89% increase in the last decade.
• Some provinces didn’t have an increase in climate-related damages but still experienced home insurance inflation, absorbing the overall risk of increased climate-related damages across the country.
• Climate-related disasters have cost an average Canadian around C$409 per year in increased home insurance premiums in the last 10 years.
• Home Insurance premiums have increased by 76% across Canada in the last decade, with Saskatchewan and Alberta having the highest increases at 106% and 90%, respectively.

Methodology

In conducting its analysis, MyChoice examined how insurable losses from natural disasters changed over the last 40 years across Canada. Using data from the Canadian Disaster Database, the team compared the 10-year average of disaster-related annual insurable losses against the prior 30-year average, adjusted for inflation. The team also analyzed the Shelter Consumer Price Index data from the past 10 years to determine the home insurance inflation across Canada and compared it to current rates from the MyChoice quote database.

Source: MyChoice